Australian lithium stocks pulled back this week on news that a key lithium mine in China had reopened.
Pilbara Minerals dropped five per cent from $2.23 per share to $2.11 per share on Tuesday, while Liontown Resources fell nine per cent to $0.60 per share and Mineral Resources dropped as low as $31.62 at midday on Wednesday (from a peak of $35.18 the day before).
Reports arose on Tuesday that CATL, which occupies both upstream and downstream lithium sectors, had reopened its Jianxiawo lepidolite mine in the Jiangxi province of China.
According to Benchmark, CATL had been prompted by the local government to resume operations, which had been suspended since September 2024, “in a bid to increase local revenue and support jobs”.
“Currently, the (Jianxiawo) operation is producing over 2000 tonnes of lithium carbonate,” a spokesperson from CATL’s refinery partner Lopal Tech said.
“As we move forward, the plan is to ramp up production to exceed 3000 tonnes of lithium carbonate per month.”
This has seemingly affected affected lithium prices as well.
Battery-grade lithium carbonate (VAT excluded) on the Shanghai Metals Market (SMM) was trading at $US9233 per tonne (t) on February 13, down from late-January levels of around $US9450/t.
Battery-grade lithium hydroxide (coarse particles, VAT excluded) on the same platform was trading at $US8514/t on February 13, down from around $US8590/t in late-January.
Raw material prices have been gone the other way, with SMM Australian spodumene concentrates (CIF China) changing hands at $US885/t on February 13, higher than mid-January levels of around $US865/t.
There’s no knowing exactly how much of an impact Jianxiawo’s reopening will have on prices long-term, but more production is not what Australian miners and the broader lithium market are asking for right now.
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